Market Bottoming? – I doubt it
Ben Bernanke thinks we’re turning a corner. As does Goldman Sachs. Paul Krugman, on the other hand, calls it the inventory bounce. It’s the period after existing inventories have been run down, and production starts up again, but it doesn’t reflect a solution to the underlying problem – excess debt that needs to be retired, and in retiring it, a lot of money which would otherwise be fuelling growth isn’t.*
* Actually, it isn’t twice – or more than twice – because previously people were taking that money and then using it to incur debt (“leveraging”) and that leveraged amount has been contributing to growth.